Law: Income Tax Ordinance, 1979

Section: 91,85,111

(a) Income-tax Ordinance (XXXI of 1979)---S. 91--Penalty--Notice--Assessee's failure to pay tax--Prior notice or imposing penalty, held, necessary--Underlying principle being that me should, not be condemned unheard. P L D 1964 S C 410 rel. (b) Income-tax Ordinance (XXXI of 1979)-- --S. 85-Super tax--Demand notice--Date set for depositing amount same Is date of issue of notice--Date of payment already expired when demand notice reached assessee--Period of thirty days required to be given for payment not mentioned in notice and Assessing Officer somehow omitted demand notice to specify same--Demand notice, held, not valid and should not be complied with in circumstances. (c) Income-tax Ordinance (XXXI of 1979)-- --S. 111--Penalty, rate of--First default--Penalty imposed on assessee 10%--Default by assessee being first default, rate of penalty reduced from 10% to 21% in circumstances. 1981 P T D (Trib.) 179 rel. ORDER This is a departmental appeal preferred against the order of learned Appellate Assistant Commissioner, dated 18-3-1984, relating to charge year 1981-82, by which he cancelled the penalty imposed on the assessee under section 91(1) of the Income-tax Ordinance, 1979, holding that no notice as required was issued prior to imposing the penalty. The assessee is a registered firm engaged to the business of imports and exports on commission basis. As such a demand for payment of super-tax amounting to Rs.1,815 was created against it-and by notice, dated 28-6-1984 it was directed to pay-tax. The 'notice was served on 15-7-1984 and on failure of the firm to satisfy the demand within the specified period of 30 days penalty was imposed on it under section 91(1) vide order, dated 14-2-1985 by the assessing officer. The firm challenged the order by way of appeal before Appellate Assistant Commissioner, containing that no notice was given to it before imposing penalty and that the amount of penalty was excessive. The learned Appellate Assistant Commissioner upheld the plea that requisite notice had been issued to which the firm was entitled under the law so as to be apprised of the action intended to be taken against it and accordingly he ordered annulment of the…

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